Howtek sales drop prompts layoffs

A sharp decline in sales at x-ray film digitizer firm Howtek hasforced the Hudson, NH, company to cut 20 jobs. Howtek attributedthe revenue shortfall to delays in getting Food and Drug Administrationclearance for its Scanmaster DX product. The FDA cleared the digitizerin January, three months after Howtek's planned launch date inNovember.

For the first quarter of 1996 (end-March), Howtek had salesof $2 million, a major drop from the $5.9 million in revenuesposted in the first quarter of 1995. The company registered aloss of $2.3 million, compared with net income of $153,000 inthe same quarter a year ago.

Howtek said that weakness in the graphic arts market, whereit also markets its scanners, also contributed to the shortfall.The company said that the layoffs are designed to get expensesback in line with revenues.